Which Statement About M2 Is Incorrect

question 6

Multiple Choice

Which statement about M2 is incorrect?

• A) M2 is a broader measure of money than M1.
• B) Small-denomination time deposits are part of M2.
• C) Near monies are more liquid than M1.
• D) Demand deposits are part of M2.

---

Definitions:

Capitulating

The act of surrendering or yielding under specific conditions.

Overexpressing

Showing or articulating an emotion, thought, or feeling to an excessive or exaggerated degree.

Suppressing

The act of consciously holding back or restraining emotions, thoughts, or actions that are considered unacceptable or unwanted.

Behavior

The observable actions or reactions of an individual or group in response to external or internal stimuli.